Addressing Housing Challenges in Lethbridge: why I supported 4 new housing projects.

At Tuesday’s City Council meeting, Council approved 4 proposed housing projects on the city’s southside. It was not an easy decision, and as these projects were met with some community opposition at the December public hearings, I wanted to take a moment to more fully explain why I supported these projects.

We need to ensure we are offering a space for everyone who lives here to belong. That includes offering a wide range of housing options, as well as developing and retaining our local workforce. Housing and workforce development are key to our city’s economic viability.

These 4 projects will see an additional 153 – 159 homes added to our local housing inventory, they may also include opportunity for the development of 6 businesses.

One of the things I learned at a recent Economic Development Board meeting, during a presentation on the DestinationNEXT survey done by Tourism Lethbridge, is that workforce development in our local tourism industry is challenged because of a lack of housing for workers in those businesses that are foundational to the industry. How do we grow our local economy and industries if we have no where for people to live?

According to CMHC, as of October 2024, the rental vacancy rate in Lethbridge was reported at 0.6%. This represents a significant decrease from the 2.1% vacancy rate reported in October 2023.

The decline in vacancy rates has been accompanied by notable increases in rental prices. In 2024, Lethbridge experienced a 26% rise in average rent, marking the fourth-largest increase among Alberta municipalities. Specifically, as of December 2024, a typical one-bedroom unit rented for an average of $1,366 per month, reflecting a 14.5% increase over the past year, while two-bedroom units averaged $1,529 per month, an 8.6% increase. These trends indicate a tightening rental market in Lethbridge, with decreasing vacancy rates and rising rental costs.

According to an Action Canada paper, “For one in three Canadians, ‘home’ belongs to someone else and renting may be the only option,” and the Lethbridge Chamber of Commerce’s policy, “A Pathway to Fixing the Affordable Housing Crisis in Alberta” outlines that “Housing is an integral part of economic growth. The connections between affordable housing investment and economic growth have been well recognized in literature. And yet investment in affordable housing has been insufficient to meet demands. To ensure long-term community sustainability, local and regional economic development and growth plans must consider the role of affordable housing in the growing economy.”

Approving these projects also has a direct impact on our tax base. In reviewing the Targeted Redevelopment Incentive submissions, 3 of these projects could generate an estimated $3.46M in additional tax revenues over 20 years. This doesn’t consider the economic impact of the construction projects themselves, which would include construction spending, increased labour force employment, and the resulting labour force spending in our city.

Supporting these housing projects is a proactive step toward addressing our city’s housing challenges, supporting workforce development, and strengthening our local economy. While the decision was not without its challenges, increasing housing availability helps alleviate pressure on the rental market, attracts and retains a skilled workforce, and creates opportunities for economic growth. These projects represent an investment in the future of Lethbridge – a future where everyone has a place to call home and our economy thrives as a result.


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